FINAL TERMS KONDITIONENBLATT. No. G199. dated 22 September in connection with the Base Prospectus dated 30 September 2010

Transkript

1 EXECUTION VERSION FINAL TERMS KONDITIONENBLATT No. G199 dated 22 September 2011 in connection with the Base Prospectus dated 30 September 2010 regarding the Euro 2,000,000,000 German Note Programme of Morgan Stanley B.V. (incorporated with limited liability in the Netherlands) as issuer and Morgan Stanley (incorporated under the laws of the State of Delaware in the United States of America) as guarantor KONDITIONENBLATT Nr. G199 vom 22. September 2011 im Zusammenhang mit dem Basisprospekt vom 30. September 2010 für das Euro German Note Programme der Morgan Stanley B.V. (eingetragen mit beschränkter Haftung in den Niederlanden) als Emittentin und Morgan Stanley (gegründet nach dem Recht des Staates Delaware in den Vereinigten Staaten von Amerika) als Garantin

2 - 2- POTENTIAL PURCHASERS OF THESE NOTES SHOULD BE AWARE THAT THE RETURN OF PRINCIPAL IS LINKED TO THE VALUE OF AN INDEX. MOVEMENTS IN THE VALUE OF THE INDEX MAY ADVERSELY AFFECT THE VALUE OF THESE NOTES. THESE NOTES ARE NOT PRINCIPAL PROTECTED, I.E. IN A WORST CASE SCENARIO, AN INVESTOR MAY LOSE ALL OR A SUBSTANTIAL PART OF ITS INVESTMENT. ERWERBER DIESER SCHULDVERSCHREIBUNGEN MÜSSEN BERÜCKSICHTIGEN, DASS DER RÜCKZAHLUNGSBETRAG VOM WERT EINES INDEX ABHÄNGT. EINE VERÄNDERUNG DES WERTES DIESER AKTIE KANN NACHTEILIGE AUSWIRKUNGEN AUF DEN WERT DER SCHULDVERSCHREIBUNGEN HABEN. DIESE SCHULDVERSCHREIBUNGEN SIND NICHT KAPITALGESCHÜTZT, D.H., DASS IM SCHLIMMSTEN FALL, DER INVESTOR SEIN GESAMTES ODER EINEN WESENTLICHEN TEIL SEINES INVESTIERTEN KAPITALS VERLIEREN KANN. ISIN: DE000MS0KDJ7 Common Code: Other securities code (WKN): MS0KDJ Issue of up to Euro 100,000,000 Index Linked Notes (Series G199) (the "Notes") under the Euro 2,000,000,000 German Note Programme Emission von bis zu Euro Indexbezogene Schuldverschreibungen (Serie G199) (die "Schuldverschreibungen") unter dem Euro German Note Programme 22 September 2011 The Final Terms are issued to give details of an issue of Notes under the Euro 2,000,000,000 German Note Programme of Morgan Stanley B.V. (the "Programme") and are to be read in conjunction with the Base Prospectus dated 30 September 2010, as supplemented by a supplement from time to time. The terms and conditions applicable to the Notes (the "Conditions") and the English or the German language translation thereof, as the case may be, if any, are attached to these Final Terms. They replace in full the Terms and Conditions of the Notes as set out in the Base Prospectus and take precedence over any conflicting provisions of these Final Terms. Das Konditionenblatt enthält Angaben zur Begebung von Schuldverschreibungen unter dem Euro German Note Programme der Morgan Stanley B.V. (das "Programm") und ist in Verbindung mit dem Basisprospekt vom 30. September 2010, wie durch einen Nachtrag von Zeit zu Zeit ergänzt, zu lesen. Die für die Schuldverschreibungen geltenden Anleihebedingungen (die "Bedingungen") sowie eine etwaige englischsprachige bzw. deutschsprachige Übersetzung sind diesem Konditionenblatt beigefügt. Die Bedingungen ersetzen in Gänze die im Basisprospekt abgedruckten Anleihebedingungen und gehen etwaigen abweichenden Bestimmungen dieses Konditionenblattes vor. Save as disclosed in item 17 below, so far as the Issuer is aware, no person involved in the offer of the Notes has an interest material to the offer. Mit Ausnahme des unter dem nachfolgenden Punkt 17 Dargelegten, ist, soweit es der Emittentin bekannt ist, keine weitere Person beteiligt, welche an dem Angebot Interessen hat, die von ausschlaggebender Bedeutung sind. Capitalised terms used in the section relating to Index Linked Notes, Equity Linked Notes and Commodity Linked Notes and not otherwise defined herein or in the Conditions shall have the meaning set out in the 2002 ISDA Equity Derivatives Definitions, the 2005 ISDA Commodity Definitions and, as the case may be, in the 2003 ISDA Credit Derivatives Definitions published by the International Swaps and Derivatives Association, Inc., save that any references to the 'Related Confirmation' shall be deemed to refer to the 'relevant Final Terms.

3 - 3- In den Abschnitten über Index-, Equity- und Warenbezogene Schuldverschreibungen haben groß geschriebene Begriffe, soweit sie hier nicht anders definiert sind und soweit sich aus diesem Konditionenblatt nichts anders ergibt, dieselbe Bedeutung wie in den 2002 ISDA Equity Derivatives Definitions, den 2005 ISDA Commodity Definitions bzw. den 2003 ISDA Credit Derivatives Definitions, veröffentlicht durch die International Swap and Derivatives Association, Inc. Bezugnahmen in den 2003 ISDA Credit Derivatives Definitions auf die "Related Confirmation" gelten als Bezugnahmen auf das jeweilige "Konditionenblatt". The Issuer accepts responsibility for the information contained in these Final Terms and declares, that having taken all reasonable care to ensure that such is the case, the information contained in these Final Terms is, to the best knowledge, in accordance with the facts and contains no omission likely to affect its import, save for the information regarding (the issuer(s) of) the relevant underlying(s). The information included herein with respect to (the issuer(s) of) the relevant underlying(s) consists of extracts from, or summaries of, annual reports and other publicly available information. The Issuer makes no representation that any publicly available information or any other publicly available documents regarding (the issuer(s) of) the relevant underlying(s) are accurate and complete and does not accept any responsibility in respect of such information. There can be no assurance that all events occurring prior to the date of these Final Terms that would affect the trading price of the relevant underlying(s) (and therefore the trading price and value of the Notes) have been publicly disclosed. Subsequent disclosure of any such events or the disclosure or failure to disclose material future events concerning the relevant underlying(s) could affect the trading price and value of the Notes. Die Emittentin übernimmt die Verantwortung für die Angaben in diesem Konditionenblatt und bestätigt, dass sie mit angemessener Sorgfalt überprüft hat, dass die in diesem Konditionenblatt enthaltenen Angaben nach bestem Wissen richtig sind und keine Angaben ausgelassen wurden, deren Auslassung die hierin enthaltenen Angaben irreführend erscheinen lassen könnte, mit Ausnahme der Informationen, die (den) (die) (Emittenten (der) (des)) maßgebliche(n) Basiswert(e) betreffen. Die hierhin enthaltenen Informationen, die (den) (die) (Emittenten (der) (des)) maßgebliche(n) Basiswert(e) betreffen, wurden Auszügen oder Zusammenfassungen von Geschäftsberichten oder anderen öffentlich verfügbaren Informationsquellen entnommen. Die Emittentin übernimmt keine Gewährleistung dahingehend, dass jegliche öffentlich zugänglichen Informationen oder anderweitige Dokumente betreffend den Emittenten der maßgebliche(n) Basiswert(e) richtig und vollständig sind und übernimmt hinsichtlich solcher Informationen keine Verantwortung. Es kann nicht zugesichert werden, dass alle Ereignisse, die vor dem Datum dieses Konditionenblatts eingetreten sind, die den Marktpreis (der) (des)) maßgebliche(n) Basiswert(e) (und somit den Marktpreis und den Wert der Schuldverschreibungen) beeinträchtigen können, veröffentlicht worden sind. Eine nachträgliche Veröffentlichung solcher Ereignisse oder die Veröffentlichung oder das Unterlassen der Veröffentlichung von wesentlichen zukünftigen Ereignissen, welche die (der) (des)) maßgebliche(n) Basiswert(e) betreffen, können sich negativ auf den Marktpreis oder den Wert der Schuldverschreibungen auswirken. These Final Terms do not constitute an offer to sell or the solicitation of an offer to buy any Notes or an investment recommendation. Neither the delivery of these Final Terms nor any sale hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the Issuer or the issuer(s) of the Underlying Securities since the date hereof or that the information contained herein is correct as of any date subsequent to this date. Any significant new factor, material mistake or inaccuracy relating to the information contained herein which is capable of affecting the assessment of the Notes and which arises or is noted since the date hereof and prior to the end of the public offer period or, as the case may be, the time when trading on a regulated market begins shall be published in a supplement hereto. Dieses Konditionenblatt stellt kein Angebot oder eine Einladung dar, Schuldverschreibungen zu verkaufen oder zu kaufen und ist auch nicht als Anlageempfehlung zu betrachten. Weder die Übergabe dieses Konditionenblatts bzw. der Verkauf von Schuldverschreibungen hierunter bedeutet, dass keine Verschlechterung der Finanzlage der Emittentin oder der Emittenten der Basiswerte seit dem Datum dieses Konditionenblatts eingetreten ist oder dass die hierin enthaltenen Informationen auch nach diesem Datum zutreffend sind. Jeder wichtige neue Umstand oder jede wesentliche Unrichtigkeit oder Ungenauigkeit in Bezug auf hierhin enthaltene Angaben, die die Beurteilung der Schuldverschreibungen

4 - 4- beeinflussen können und die nach diesem Datum und vor dem Schluss des öffentlichen Angebots oder, sofern einschlägig, der Einführung oder Eröffnung des Handels an einem geregelten Markt auftreten oder festgestellt werden, müssen in einem Nachtrag hierzu genannt werden. The distribution of these Final Terms and the offering, sale and delivery of the Notes in certain jurisdictions may be restricted by law. Persons into whose possession these Final Terms come are required by the Issuer to inform themselves about and to observe any such restrictions. For a further description of certain restrictions on the offering and sale of the Series, see Part F "Subscription and Sale" of the Base Prospectus as supplemented or amended by these Final Terms. Der Vertrieb dieses Konditionenblatts sowie das Angebot, der Verkauf und die Lieferung von Schuldverschreibungen kann in bestimmten Ländern gesetzlich beschränkt sein. Personen, die in den Besitz dieses Konditionenblatts gelangen, sind von der Emittentin aufgefordert, sich selbst über solche Beschränkungen zu unterrichten und diese zu beachten. Wegen der Darstellung bestimmter Beschränkungen betreffend Angebot und Verkauf von Serien wird auf den im Basisprospekt enthaltenen Abschnitt F "Subscription and Sale" verwiesen, der durch dieses Konditionenblatt ergänzt wird. 1. (i) Issuer: Emittentin: (ii) Guarantor: Garantin: 2. Series Number: Nummer der Anleihe: 3. Language of Conditions: Sprache der Bedingungen: 4. Specified Currency or Currencies: Währung(en): 5. Aggregate Principal Amount: Gesamtnennbetrag: Series: der Serie: 6. Issue Price: Emissionspreis: 7. Specified Denomination(s): Nennbetrag/-beträge: 8. Issue Date: Begebungstag 9. Maturity Date: Fälligkeitstag: Morgan Stanley B.V. Morgan Stanley B.V. Morgan Stanley Morgan Stanley G199 G199 German and English (German controlling) Deutsch und Englisch (deutscher Text maßgeblich) Euro ("EUR") Euro ("EUR") Up to EUR 100,000,000 Bis zu EUR Up to EUR 100,000,000 Bis zu EUR per cent. of the Specified Denomination (fees paid to a distribution partner (if any) will be disclosed upon request) 100 % des Nennbetrags (etwaige an eine Vertriebsstelle zu zahlende Gebühren werden auf Anfrage offengelegt) EUR 1,000 EUR October Oktober October Oktober 2014

5 (i) Interest Basis: Zinsmodalität: (ii) Day Count Fraction: Zinstagequotient: 11. (i) Redemption/ Payment Basis: Rückzahlungsmodalität: (ii) Protection Amount: Kapitalschutz: 12. Change of Interest or Redemption/Payment Basis: Wechsel der Zins- oder Rückzahlungsmodalität: 13. Put/Call Options: Gläubigerkündigungsrechte/ Kündigungsrechte der Emittentin: 14. Listing: Börsenzulassung: 15. Estimated Expenses: Geschätzte Gesamtkosten: 16. Use of Proceeds: Verwendung der Erträge: 17. Material Interest: Interessen von ausschlaggebender Bedeutung: Fixed Rate, further details see below Festzinssatz, weitere Einzelheiten siehe nachstehend 30/360 (unadjusted) 30/360 (unadjusted) Index Linked Redemption; see Appendix A Indexbezogene Rückzahlung; siehe Anhang A Application will be made for admission to trading of the Notes as of 24 October 2011 on the unregulated market (Freiverkehr) of the Frankfurt Stock Exchange (Scoach Premium) and on the unregulated market (Freiverkehr) of the Stuttgart Stock Exchange (EUWAX). Die Zulassung der Schuldverschreibungen zum Handel ab dem 24. Oktober 2011 im Freiverkehr der Frankfurter Wertpapierbörse (Scoach Premium) und der Stuttgarter Börse (EUWAX) wird beantragt. PROVISIONS RELATING TO INTEREST (IF ANY) PAYABLE BESTIMMUNGEN ZUR VERZINSUNG 18. Fixed Rate Note Provisions: Festzinsmodalitäten: Applicable Anwendbar (i) Rate(s) of Interest: 5.00 per cent. per annum payable in arrear for the period from, and including, the Issue Date to, but excluding, the Maturity Date.

6 - 6- Zinssatz (Zinssätze): (ii) Interest Payment Date(s): Zinszahltag(e): (iii) Fixed Coupon Amount(s): Festzinsbetrag (Festzinsbeträge): (iv) Broken Amount(s): Stückzinsen: (v) Other terms relating to the method of calculating interest: Sonstige Bestimmungen zur Zinsberechnung: (vi) Yield: Emissionsrendite: (vii) Method of calculating the yield: Berechnungsmethode der Emissionsrendite: 19. Floating Rate Note Provisions: Modalitäten bei variabler Verzinsung: 20. Constant Maturity Swap Floating Rate Notes / Constant Maturity Swap Spread-Linked Notes: Constant Maturity Swap variabel verzinsliche Schuldverschreibungen / Schuldverschreibungen abhängig von einer Constant Maturity Swap Spanne: 21. Zero Coupon Note Provisions: Null-Kupon Modalitäten: 22. Interest Bearing Equity Linked Notes Bestimmungen über die Verzinsung von Equitybezogenen Schuldverschreibungen: 5,00 % per annum zahlbar nachträglich für den Zeitraum vom Begebungstag (einschließlich) bis zum Fälligkeitstag (ausschließlich). See Appendix A Siehe Anhang A None Keine PROVISIONS RELATING TO REDEMPTION RÜCKZAHLUNGSMODALITÄTEN 23. Automatic Exercise [( 1(1))] Automatische Ausübung [( 1(1))] 24a. Call Option [( 4(3))]: Vorzeitige Rückzahlung nach Wahl der Emittentin [( 4(3))]:

7 - 7-24b. Tax Call ( 4(2)) Vorzeitige Rückzahlung aus steuerlichen Gründen ( 4(2)) 25. Put Option [( 4([3][4]))]: Vorzeitige Rückzahlung nach Wahl der Gläubiger [( 4 ([3][4]))]: Applicable Anwendbar 26. 4(3) Early Redemption following the occurrence of: 4(3) Vorzeitige Rückzahlung bei Vorliegen von: (i) Change in Law: Rechtsänderung: Applicable Anwendbar (ii) Hedging Disruption: Hedging-Störung: (iii) Increased Cost of Hedging: Gestiegene Hedging Kosten: (iv) Insolvency Filing: Insolvenzantrag: (v) Further Events: Weitere Ereignisse: 27. Final Redemption Amount of each Note: Rückzahlungsbetrag: 28. Early Redemption Amount(s) of each Note payable on redemption on an Event of Default or Tax Call and/ or the method of calculating the same (if required or if different from that set out in 4): Vorzeitige(r) Rückzahlungsbetrag (-beträge) bei Kündigungen oder Vorzeitiger Rückzahlung aus steuerlichen Gründen und Methode zu dessen (deren) Berechnung (falls erforderlich oder falls abweichend von 4): Applicable Anwendbar Applicable Anwendbar Applicable Anwendbar The Index Linked Redemption Amount, see Appendix A Der Indexbezogene Rückzahlungsbetrag; siehe Anhang A See Appendix A Siehe Anhang A PROVISIONS RELATING TO INDEX LINKED NOTES BESTIMMUNGEN FÜR INDEXBEZOGENE SCHULDVERSCHREIBUNGEN 29. Index Linked Note Provisions: Indexbezogene Modalitäten: Applicable in relation to the Index Linked Redemption Amount Anwendbar in Bezug auf den Indexbezogenen Rückzahlungsbetrag

8 - 8- (i) (ii) Index Basket Transaction: Index Basket Transaktion: Index: Index: DAX Index (Bloomberg: DAX Index) (see the Annexe to the Final Terms) DAX Index (Bloomberg: DAX Index) (siehe den Zusatz zum Konditionenblatt) (iii) Name of Index Sponsor(s): Namen des/der Sponsor(en): (iv) - Related Exchange(s): - Verbundene Börsen: - Exchange: - Börse: (v) Description of formula to be used to determine the Index Linked Redemption Amount: Beschreibung der Formel zur Berechnung des indexbezogenen Rückzahlungsbetrag: (vi) Determination Agent: Berechnungsstelle: (vii) Index Valuation Date(s): Index-Bewertungstag(e): (viii) Index Valuation Time: Indexfeststellungszeit: (ix) Provisions for determining index linked amounts where calculation by reference to Index and/or the Formula is impossible or impracticable: Bestimmungen für den Fall, dass die Berechnung unter Zugrundelegung des Indexes und/ oder der Formel nicht möglich oder nicht zweckmäßig ist: (x) Specified Period(s)/Specified Interest Payment Dates: Festgelegte Zinsperiode(n)/festgelegte Zinszahlungstage: Deutsche Börse AG Deutsche Börse AG All Exchanges Alle Börsen See 4a of the Conditions Siehe 4a der Bedingungen See Appendix A Siehe Appendix A Morgan Stanley & Co. International plc Morgan Stanley & Co. International plc 19 October 2011 (the "Initial Index Valuation Date") and 21 October 2014 (the "Final Index Valuation Date") 19. Oktober 2011 (der "Erste Index- Bewertungstag") und 21. Oktober 2014 (der "Letzte Index-Bewertungstag") Scheduled Closing Time Planmäßiger Börsenschluss Pursuant to 4c Gemäß 4c

9 - 9- (xi) Business Day Convention: Geschäftstagekonvention: (xii) Relevant Financial Centre(s): Finanzzentrum (-zentren): (xiii) Protection Amount: Kapitalschutz: (xiv) Extraordinary Event: Außerordentliches Ereignis: (xiv) Additional Provisions: Weitere Bestimmungen: (xv) Price Source: Referenzquelle: Following Business Day Convention Folgender-Geschäftstag-Konvention TARGET, London and Frankfurt am Main TARGET, London und Frankfurt am Main Determination Agent Adjustment Anpassung durch Berechnungsstelle See Appendix A Siehe Appendix A PROVISIONS RELATING TO COMMODITY LINKED NOTES BESTIMMUNGEN FÜR WARENBEZOGENE SCHULDVERSCHREIBUNGEN 30. Commodity Linked Note Provisions: Warenbezogene Modalitäten: PROVISIONS RELATING TO EQUITY LINKED NOTES BESTIMMUNGEN FÜR EQUITYBEZOGENE SCHULDVERSCHREIBUNGEN 31. Equity Linked Note Provisions: Equity-Modalitäten: PROVISIONS RELATING TO BOND LINKED NOTES BESTIMMUNGEN FÜR ANLEIHEBEZOGENEN SCHULDVERSCHREIBUNGEN 32. Bond Linked Note Provisions: Anleihe-Modalitäten: PROVISIONS RELATING TO FUTURES LINKED NOTES BESTIMMUNGEN FÜR FUTURESBEZOGENEN SCHULDVERSCHREIBUNGEN 33. Futures Linked Note Provisions: Futures-Modalitäten: PROVISIONS RELATING TO EXCHANGEABLE NOTES BESTIMMUNGEN FÜR UMTAUSCH-SCHULDVERSCHREIBUNGEN 34. Exchangeable Note Provisions: Umtauschmodalitäten: PROVISIONS RELATING TO CREDIT LINKED NOTES BESTIMMUNGEN FÜR KREDITBEZOGENE SCHULDVERSCHREIBUNGEN 35. Credit Linked Note Provisions: Kreditbezogene Modalitäten:

10 - 10- PROVISIONS RELATING TO DUAL CURRENCY NOTES BESTIMMUNGEN FÜR DOPPELWÄHRUNGS-SCHULDVERSCHREIBUNGEN 36. Dual Currency Provisions: Doppelwährungs-Modalitäten: GENERAL PROVISIONS APPLICABLE TO THE NOTES ALLGEMEINE BESTIMMUNGEN 37. Form of Notes: Verbriefung: 38. Relevant Financial Centre(s) or other special provisions relating to Payment Days ( 5(2)): Finanzzentrum (-zentren) oder andere spezielle Vereinbarungen in bezug auf Zahltage( 5(2)): 39. Details relating to Partly Paid Notes: Einzelheiten in bezug auf Teileingezahlte Schuldverschreibungen: 40. Rebalancing: Rebalancing: 41. Redenomination, renominalisation and reconventioning provisions: Währungsumstellung, Nennwertumstellung und Umstellungsbestimmungen: 42. Consolidation Provisions: Konsolidierungsbestimmungen: 43. Additional Provisions: Weitere Bestimmungen: 44a. Additional Tax Disclosure: Zusätzliche Information betreffend Besteuerung: 44b. Tax Gross-up (payment of Additional Amounts) ( 6): Steuer Gross-up (Zahlung von Zusätzlichen Beträgen) ( 6): 45. Rating: Rating: Global Note Globalurkunde TARGET, London and Frankfurt am Main TARGET, London und Frankfurt am Main Applicable Anwendbar

11 Method of Distribution: Vertriebsmethode: 47. (i) If syndicated, names of Managers: Falls syndiziert, Namen der Manager: Non-Syndicated Nicht syndiziert (ii) Firm commitment: Feste Zusage: (iii) No firm commitment/best efforts arrangement: Keine feste Zusage/zu den bestmöglichen Bedingungen: 48. Intermediaries in Secondary Trading: Intermediäre im Sekundärhandel: 49. Entity accepting subscriptions: Stelle, die Zeichnungen entgegennimmt: 50. Non-exempt Offer Prospektpflichtiges Angebot 51. Subscription period: Zeitraum für die Zeichnung: None Keine Morgan Stanley & Co. International plc Morgan Stanley & Co. International plc An offer of Notes may be made other than pursuant to Article 3(2) of the Prospectus Directive in Germany, Austria and Luxembourg (the "Public Offer Jurisdictions") during the period from, and including, 22 September 2011 to, and including, 19 October 2011 (the "Offer Period"). Ein Angebot kann außerhalb des Ausnahmebereichs gemäß 3(2) der Prospektrichtlinie in Deutschland, Österreich und Luxemburg (die "Öffentlichen Angebotsstaaten") innerhalb des Zeitraumes vom 22. September 2011 (einschließlich) bis zum 19. Oktober 2011 (einschließlich) (die "Angebotsfrist") durchgeführt werden. The Notes may be subscribed from, and including 22 September 2011 up to, and including, 1 p.m. (Frankfurt time) on 19 October 2011, subject to early termination and extension within the discretion of the Issuer. In der Zeit vom 22. September 2011 bis 13:00 Uhr (Frankfurter Zeit) (einschließlich) am 19. Oktober 2011 können die Schuld-

12 - 12- verschreibungen gezeichnet werden, vorbehaltlich einer Verkürzung oder Verlängerung des Vertriebszeitraumes im Ermessen der Emittentin. 52. Subscription Agreement (if any): Übernahmevertrags (soweit vorhanden): 53. Commissions: Provisionen: (i) (ii) Management/Underwriting Commission: Management- und Übernahmeprovision: Selling Commission: Verkaufsprovision (angeben): (iii) Listing Commission: Börsenzulassungsprovision: (iv) Other: Sonstige: 54. Application Process: Zuteilungsverfahren: 55. Minimum and/or maximum amount of application: Mindest- und/oder Höchstbetrag der Zeichnung: 56. Ordinary subscription rights and preemptive rights: Bezugs- und Vorwegszeichnungsrechte: 57. Process for notification: Verfahren zur Meldung zugeteilter Beträge: 58. Categories of potential investors: Kategorien potenzieller Investoren: 59. Information with regard to the manner and date of the offer: Informationen zu der Art und Weise und des Termins des Angebots: Up to 1.50 per cent. of the Issue Price (subscription surcharge) and 1.00 per cent. of the Specified Denomination (Upfront Fee). Bis zu 1,50 % des Emissionspreises (Zeichnungsgebühr) und 1,00 % des Nennbetrages (Vorabgebühr).

13 If non-syndicated, name of Manager: Falls nicht syndiziert, Name des Platzeurs: 61. TEFRA rules: TEFRA-Regelung: 62. Additional selling restrictions: Zusätzliche Verkaufsbeschränkungen: 63. Third Party Information: Informationen von Seiten Dritter: TEFRA not applicable TEFRA nicht anwendbar Where information has been sourced from a third party, confirmation that this information has been accurately reproduced and that as far as the issuer is aware and is able to ascertain from information published by that third party, no facts have been omitted which would render the reproduced information inaccurate or misleading. The source of information is set out where the relevant Information is given. The Issuer has neither independently verified any such information, nor accepts any responsibility for error or omission made in the source itself. Sofern Informationen von Seiten Dritter übernommen wurden, ist zu bestätigen, dass diese Informationen korrekt wiedergegeben wurden und dass soweit es dem Emittenten bekannt ist und er aus den von dieser dritten Partei übermittelten Informationen ableiten konnte keine Fakten unterschlagen wurden, die die reproduzierten Informationen inkorrekt oder irreführend gestalten würden. Die Quelle der Information ist bei der entsprechenden Information angegeben. Die Emittentin hat die Informationen nicht selbstständig überprüft und übernimmt keine Verantwortung für Fehler oder Auslassungen in der Quelle selbst. OPERATIONAL INFORMATION ANGABEN ZUR ABWICKLUNG 64. ISIN: DE000MS0KDJ7 65. Common Code: Common Code: 66. German Securities Code: WKN: MS0KDJ MS0KDJ 67. (i) Clearing System(s): Clearstream Banking AG, Neue Börsenstr. 1 D Frankfurt am Main

14 - 14- (ii) Clearingsysteme: Clearing System for delivery of the Underlying Securities: Clearing System zur Lieferung der Basiswerte: Clearstream Banking AG, Frankfurt, Neue Börsenstr. 1 D Frankfurt am Main (iii) Physical Delivery: Lieferung effektiver Stücke: 68. Delivery: Lieferung: 69. Fiscal Agent: Hauptzahlstelle: 70. Additional Paying Agent(s) (if any): Weitere Zahlstelle(n) (soweit vorhanden): Delivery free of payment Lieferung frei von Zahlung Deutsche Bank Aktiengesellschaft Grosse Gallusstrasse Frankfurt am Main Germany Deutsche Bank Aktiengesellschaft Große Gallusstraße Frankfurt am Main Deutschland Signed on behalf of the Issuer: By: Duly authorised By: Duly authorised

15 Interest APPENDIX A TO THE FINAL TERMS FOR INDEX LINKED NOTES English version of the Provisions regarding Interest, the Index Linked Redemption Amount and the Early Redemption Amount (1) Interest Payment Dates. (a) (b) The Notes shall bear interest at the Rate of Interest (as defined below) on their Specified Denomination from, and including, the Issue Date (the "Interest Commencement Date") to, but excluding, the first Interest Payment Date (as defined below) and thereafter from, and including, each Interest Payment Date to, but excluding, the next following Interest Payment Date. Interest on the Notes shall be payable in arrear on each Interest Payment Date. There will be no payment of accrued interest for any secondary market trades as accrued interest will be reflected in the on-going trading price of the Notes. "Interest Payment Dates" means 24 October of each calendar year from, and including, 24 October 2012 to, and including, the Maturity Date. If any Interest Payment Date would fall on a day which is not a Business Day), the payment shall be postponed to the next day which is a Business Day. (2) Rate of Interest. The Rate of Interest will be 5.00 per cent. per annum. (3) "Day Count Fraction" means, in respect of the calculation of an amount for any period of time (the "Calculation Period"), the number of days in the Calculation Period divided by 360 (the number of days to be calculated on the basis of a year of 360 days with twelve 30-day months (unless (i) the last day of the Calculation Period is the 31st day of a month but the first day of the Calculation Period is a day other than the 30th or 31st day of a month, in which case the month that includes that last day shall not be considered to be shortened to a 30-day month, or (ii) the last day of the Calculation Period is the last day of the month of February, in which case the month of February shall not be considered to be lengthened to a 30-day month)). (4) If the Issuer for any reason fails to render any payment in respect of the Notes when due, interest shall continue to accrue at the default rate established by statutory law on the outstanding amount from, and including, the due date to, but excluding, the day on which such payment is received by or on behalf of the Noteholders. 2. Index Linked Redemption Amount On the Maturity Date, the Notes shall be redeemed in accordance with 4b of the Conditions at their "Index Linked Redemption Amount" which shall be determined in accordance with the following provisions: (a) If the Barrier has not been breached, i.e. if the level of the Index at every time during the period from, but excluding, the Initial Index Valuation Date to, and including, the Final Index Valuation Date as continuously monitored on an intra-day basis is higher than or equal to the Barrier, the Index Linked Redemption Amount shall be determined in accordance with the following formula: Specified Denomination * 100%; (b) If the Barrier has been breached, i.e. if the level of the Index at any time during the period from, but excluding, the Initial Index Valuation Date to, and including, the Final Index Valuation Date as

16 - 16- continuously monitored on an intra-day basis is lower than the Barrier, the Index Linked Redemption Amount shall be determined in accordance with the following formula: Specified Denomination * MIN IndexFinal 100 %; ; IndexInitial corresponding to the Specified Denomination multiplied by the lower of (a) 100 per cent. and (b) Index Final divided by Index Initial. Whereby: "Barrier" means a value of 30 per cent. of Index Initial ; "Index Final " means the official closing level of the Index on the Final Index Valuation Date; and "Index Initial " means the official closing level of the Index on the Initial Index Valuation Date. 3. Early Redemption Amount "Early Redemption Amount" shall be an amount in EUR which the Determination Agent, in its sole and absolute discretion, determines is equal to the fair value of a Note, on such day as is selected by the Determination Agent in its sole and absolute discretion (provided that such day is not more than 15 days before the date fixed for redemption of the Notes), less the proportion attributable to that Note of the reasonable cost to the Issuer and/or any affiliate of, or the loss realised by the Issuer and/or any affiliate on, unwinding any related underlying hedging arrangements, the amount of such cost or loss being as determined by the Determination Agent in its sole and absolute discretion.

17 - 17- ANHANG A ZUM KONDITIONENBLATT Deutsche Fassung der Vorschriften betreffend der Verzinsung, den Indexbezogenen Rückzahlungsbetrag und den Vorzeitigen Rückzahlungsbetrag 1. Verzinsung (1) Zinszahlungstage. (a) (b) Die Schuldverschreibungen werden bezogen auf ihren Nennbetrag vom Begebungstag (der "Verzinsungsbeginn") (einschließlich) bis zum ersten Zinszahlungstag (wie nachstehend definiert) (ausschließlich) und anschließend von jedem Zinszahlungstag (einschließlich) bis zum unmittelbar folgenden Zinszahlungstag (ausschließlich) mit dem Zinssatz (wie nachstehend definiert) verzinst. Die Zinsen sind jährlich an jedem Zinszahlungstag nachträglich zahlbar. Es wird bei etwaigen Sekundärmarktgeschäften keine Zahlung im Hinblick auf aufgelaufene Zinsen erfolgen. Diese werden im laufenden Handelspreis der Schuldverschreibungen reflektiert. "Zinszahlungstag(e)" bedeutet den 24. Oktober eines jeden Kalenderjahres ab dem 24. Oktober 2012 (einschließlich) bis zum Fälligkeitstag (einschließlich). Fällt ein Zinszahlungstag auf einen Tag, der kein Geschäftstag ist, wird der Zahlungstermin auf den nächstfolgenden Geschäftstag verschoben. (2) Zinssatz. Der Zinssatz beträgt 5,00 % per annum (der "Zinssatz"). (3) "Zinstagequotient" bezeichnet im Hinblick auf die Berechnung eines Betrages für einen beliebigen Zeitraum (der "Zinsberechnungszeitraum") die Anzahl von Tagen im Zinsberechnungszeitraum dividiert durch 360 (wobei die Anzahl der Tage auf der Grundlage eines Jahres von 360 mit zwölf Monaten zu 30 Tagen zu ermitteln ist (es sei denn, (i) der letzte Tag des Zinsberechnungszeitraumes fällt auf den 31. Tag eines Monats, während der erste Tag des Zinsberechnungszeitraumes weder auf den 30. noch auf den 31. Tag eines Monats fällt, wobei in diesem Fall der diesen Tag enthaltende Monat nicht als ein auf 30 Tage gekürzter Monat zu behandeln ist, oder (ii) der letzte Tag des Zinsberechnungszeitraumes fällt auf den letzten Tag des Monats Februar, wobei in diesem Fall der Monat Februar nicht als ein auf 30 Tage verlängerter Monat zu behandeln ist)). (4) Wenn die Emittentin eine fällige Zahlung auf die Schuldverschreibungen aus irgendeinem Grund nicht leistet, wird der ausstehende Betrag von dem Fälligkeitstag (einschließlich) bis zum Tag der vollständigen Zahlung an die Gläubiger (ausschließlich) mit dem gesetzlich bestimmten Verzugzins verzinst. 2. Indexbezogener Rückzahlungsbetrag Am Fälligkeitstag werden die Schuldverschreibungen gemäß 4b der Bedingungen zu ihrem "Indexbezogenen Rückzahlungsbetrag" zurückgezahlt, der durch die Berechnungsstelle nach den folgenden Bestimmungen festgelegt wird: (a) Falls der Schwellenwert nicht durchbrochen wurde, d.h. falls der innerhalb eines Tages fortlaufend beobachtete Stand des Index während des Zeitraumes vom Ersten Index-Bewertungstag (ausschließlich) bis zum Letzten Index-Bewertungstag (einschließlich) stets größer als der Schwellenwert gewesen ist oder diesem entsprach, wird der Indexbezogene Rückzahlungsbetrag nach der folgenden Formel festgelegt: Nennbetrag * 100%;

18 - 18- (b) Falls der Schwellenwert durchbrochen wurde, d.h. falls der innerhalb eines Tages fortlaufend beobachtete Stand des Index während des Zeitraumes vom Ersten Index-Bewertungstag (ausschließlich) bis zum Letzten Index-Bewertungstag (einschließlich) zu irgendeinem Zeitpunkt kleiner als der Schwellenwert gewesen ist, wird der Indexbezogene Rückzahlungsbetrag nach der folgenden Formel festgelegt: Nennbetrag * MIN IndexFinal 100 %; ; IndexInitial welches dem Nennbetrag multipliziert mit dem Kleineren aus (a) 100 Prozent und (b) Index Final geteilt durch Index Initial entspricht. Wobei: "Schwellenwert" einen Wert von 30% von Index Initial bedeutet; "Index Final " den offiziellen Schlussstand des Index am Letzten Index-Bewertungstag bedeutet; und "Index Initial " den offiziellen Schlussstand des Index am Ersten Index-Bewertungstag bedeutet. 3. Vorzeitiger Rückzahlungsbetrag Der "Vorzeitige Rückzahlungsbetrag" ist ein Betrag in EUR, den die Berechnungsstelle nach eigenem Ermessen als Wert festlegt, der dem fairen Wert der Schuldverschreibung an einem Tag entspricht, den die Berechnungsstelle nach freiem Ermessen festlegt, der aber nicht mehr als 15 Tage vor dem Tag, der für die Rückzahlung der Schuldverschreibungen festgelegt wurde, liegen darf. Hiervon abgezogen werden die proportionalen Kosten, die mit der Schuldverschreibung in Verbindung stehen und bei der Emittentin bzw. bei einer ihrer verbundenen Unternehmen angefallen sind und die Verluste der Emittentin oder einer ihrer verbundenen Unternehmen im Zusammenhang mit der Auflösung von im Zusammenhang stehenden Hedging Vereinbarungen, wobei die Beträge für die zuvor bezeichneten Kosten und Verluste von der Berechnungsstelle nach freiem Ermessen festgelegt werden.

19 - 19- GENERAL TERMS AND CONDITIONS OF THE NOTES This Series of Notes is issued pursuant to an Agency Agreement relating to the Euro 2,000,000,000 German Note Programme of Morgan Stanley Bank AG, Morgan Stanley & Co. International plc, Morgan Stanley B.V. (as Issuers) and Morgan Stanley (as Guarantor) (as amended or supplemented from time to time, the "Agency Agreement") between Morgan Stanley Bank AG, Junghofstrasse 13-15, Frankfurt am Main, Germany, Morgan Stanley & Co. International plc, 25 Cabot Square, Canary Wharf, London E14 4QA, United Kingdom, and Morgan Stanley B.V., Locatellikade 1, 1076 AZ Amsterdam, The Netherlands, each in its capacity as Issuer under the Programme, and Morgan Stanley, 1585 Broadway, New York, New York 10036, U.S.A., in its capacity as Guarantor for Notes issued by MSBV, and Deutsche Bank Aktiengesellschaft, Grosse Gallusstrasse 10-14, Frankfurt am Main, Germany (in its capacity as Fiscal Agent with regard to Notes for which CBF is not the relevant Clearing System), and Morgan Stanley & Co. International plc, 25 Cabot Square, Canary Wharf, London E14 4QA, United Kingdom (in its capacity as Fiscal Agent with regard to Notes for which CBF is the relevant Clearing System) (each a "Fiscal Agent"). Copies of the Agency Agreement and the ISDA Equity, Commodity and Credit Derivative Definitions are available for inspection during normal business hours by the holders of the Notes (the "Noteholders") at the specified offices of the Fiscal Agent. 1 (Currency. Denomination. Form. Clearing System) (1) Currency. Denomination. Form. This Series of Notes (the "Notes") of Morgan Stanley B.V. (the "Issuer") is issued in an aggregate principal amount of up to Euro ("EUR") 100,000,000 (in words: one hundred million) on 24 October 2011 (the "Issue Date") and is divided in denominations of EUR 1,000 (the "Specified Denomination"). (2) Global Note. The Notes are represented by a global note (the "Global Note") without coupons which shall be signed manually by one or more authorised signatory/ies of the Issuer and shall be authenticated by or on behalf of the Fiscal Agent. The Noteholders will not have the right to demand or to receive definitive notes under any circumstances. (3) Clearing System. Each Global Note will be kept in custody by or on behalf of the Clearing System until all obligations of the Issuer under the Notes have been satisfied. "Clearing System" means the following: Clearstream Banking AG, Frankfurt am Main ("CBF") or any successor in this capacity. The Noteholders have claims to co-ownership shares of the respective Global Note which may be transferred in accordance with the rules and regulations of the respective Clearing System. 2 (Status. Guarantee) (1) Status. The obligations under the Notes constitute unsecured and unsubordinated obligations of the Issuer ranking pari passu among themselves and pari passu with all other unsecured and unsubordinated obligations of the Issuer, save for such obligations as may be preferred by mandatory provisions of law. (2) Guarantee. Morgan Stanley (the "Guarantor") has given its unconditional and irrevocable guarantee (the "Guarantee") for the due payment of principal of, and interest on, and any other amounts expressed to be payable under the Notes. Under the Guarantee, each Noteholder may require performance of the Guarantee directly from the Guarantor and to enforce the Guarantee directly against the Guarantor. The Guarantee constitutes a direct, unconditional, unsubordinated and unsecured obligation of the Guarantor which rank and will at all times rank at least pari passu with all other present and future direct, unconditional, unsubordinated and unsecured obligations of the Guarantor, save for such obligations as may be preferred by mandatory provisions of law. Copies of the Guarantee may be obtained free of charge at the office of the Fiscal Agent set forth in 9.

20 (Interest) (1) Interest Payment Dates. (a) (b) The Notes shall bear interest at the Rate of Interest (as defined below) on their Specified Denomination from, and including, the Issue Date (the "Interest Commencement Date") to, but excluding, the first Interest Payment Date (as defined below) and thereafter from, and including, each Interest Payment Date to, but excluding, the next following Interest Payment Date. Interest on the Notes shall be payable in arrear on each Interest Payment Date. There will be no payment of accrued interest for any secondary market trades as accrued interest will be reflected in the on-going trading price of the Notes. "Interest Payment Dates" means 24 October of each calendar year from, and including, 24 October 2012 to, and including, the Maturity Date. If any Interest Payment Date would fall on a day which is not a Business Day (as defined in 5(2)), the payment shall be postponed to the next day which is a Business Day. (2) Rate of Interest. The Rate of Interest will be 5.00 per cent. per annum. (3) "Day Count Fraction" means, in respect of the calculation of an amount for any period of time (the "Calculation Period"), the number of days in the Calculation Period divided by 360 (the number of days to be calculated on the basis of a year of 360 days with twelve 30-day months (unless (i) the last day of the Calculation Period is the 31st day of a month but the first day of the Calculation Period is a day other than the 30th or 31st day of a month, in which case the month that includes that last day shall not be considered to be shortened to a 30-day month, or (ii) the last day of the Calculation Period is the last day of the month of February, in which case the month of February shall not be considered to be lengthened to a 30-day month)). (4) If the Issuer for any reason fails to render any payment in respect of the Notes when due, interest shall continue to accrue at the default rate established by statutory law on the outstanding amount from, and including, the due date to, but excluding, the day on which such payment is received by or on behalf of the Noteholders. 4 (Redemption) (1) Final Redemption. The Notes shall be redeemed pursuant to 4b. (2) Tax Call. The Notes shall be redeemed at their Early Redemption Amount together with any interest accrued at the option of the Issuer in whole, but not in part, at any time, on giving not less than 30 days' notice to the Noteholders (which notice shall be irrevocable) by settlement in cash in accordance with 5 if; (i) on the occasion of the next payment or delivery due under the Notes, the Issuer or the Guarantor has or will become obliged to pay additional amounts as provided or referred to in 6 as a result of any change in, or amendment to, the laws or regulations of the Federal Republic of Germany ("Germany"), the United Kingdom, Austria, Luxembourg, The Netherlands and the United States of America or any political subdivision or any authority thereof or therein having power to tax, or any change in the application or official interpretation of such laws or regulations, which change or amendment becomes effective on or after the Issue Date; and (ii) such obligation cannot be avoided by the Issuer or the Guarantor taking reasonable measures (but no Substitution of the Issuer pursuant to 10) available to it. Before the publication of any notice of redemption pursuant to this paragraph, the Issuer shall deliver to the Fiscal Agent a certificate signed by an executive director of the Issuer stating that the Issuer is entitled to effect such redemption and setting forth a statement of facts showing that the conditions precedent to the right of the Issuer so to redeem have occurred, and an opinion of independent legal or tax advisers

21 - 21- of recognised standing to the effect that the Issuer or the Guarantor has or will become obliged to pay such additional amounts as a result of such change or amendment. (3) Early Redemption following the occurrence of a Change in Law and/or Hedging Disruption and/or Increased Cost of Hedging and/or Insolvency Filing. The Issuer may redeem the Notes at any time prior to the Maturity Date following the occurrence of a Change in Law and/or a Hedging Disruption and/or an Increased Cost of Hedging and/or Insolvency Filing. The Issuer will redeem the Notes in whole (but not in part) on the second Business Day after the notice of early redemption in accordance with 12 has been published and provided that such date does not fall later than two Business Days prior to the Maturity Date (the "Early Redemption Date") and will pay or cause to be paid the Early Redemption Amount in respect of such Notes together with any interest accrued to the relevant Noteholders for value on such Early Redemption Date, subject to any applicable fiscal or other laws or regulations and subject to and in accordance with these Terms and Conditions. Payments of any applicable taxes and redemption expenses will be made by the relevant Noteholder and the Issuer shall not have any liability in respect thereof. Whereby: "Change in Law" means that, on or after the Issue Date of the Notes (A) due to the adoption of or any change in any applicable law or regulation (including, without limitation, any tax law), or (B) due to the promulgation of or any change in the interpretation by any court, tribunal or regulatory authority with competent jurisdiction of any applicable law or regulation (including any action taken by a taxing authority), the Issuer determines in good faith that (X) it has become illegal to hold, acquire or dispose of the underlying security/ies relating to the Notes, or (Y) it will incur a materially increased cost in performing its obligations under the Notes (including, without limitation, due to any increase in tax liability, decrease in tax benefit or other adverse effect on its tax position)); "Hedging Disruption" means that the Issuer is unable, after using commercially reasonable efforts, to (A) acquire, establish, re-establish, substitute, maintain, unwind or dispose of any transaction(s) or asset(s) it deems necessary to hedge the equity price risk of issuing and performing its obligations with respect to the Notes, or (B) realise, recover or remit the proceeds of any such transaction(s) or asset(s); and "Increased Cost of Hedging" means that the Issuer would incur a materially increased (as compared with circumstances existing on the Issue Date) amount of tax, duty, expense or fee (other than brokerage commissions) to (A) acquire, establish, re-establish, substitute, maintain, unwind or dispose of any transaction(s) or asset(s) it deems necessary to hedge the equity price risk of issuing and performing its obligations with respect to the Notes, or (B) realise, recover or remit the proceeds of any such transaction(s) or asset(s), provided that any such materially increased amount that is incurred solely due to the deterioration of the creditworthiness of the Issuer shall not be deemed an Increased Cost of Hedging. (4) Redemption Amounts. For the purposes of this 4 and 8 (Events of Default) the following applies: "Early Redemption Amount" shall be an amount in EUR which the Determination Agent, in its sole and absolute discretion, determines is equal to the fair value of a Note, on such day as is selected by the Determination Agent in its sole and absolute discretion (provided that such day is not more than 15 days before the date fixed for redemption of the Notes), less the proportion attributable to that Note of the reasonable cost to the Issuer and/or any affiliate of, or the loss realised by the Issuer and/or any affiliate on, unwinding any related underlying hedging arrangements, the amount of such cost or loss being as determined by the Determination Agent in its sole and absolute discretion.

22 - 22-4a (Definitions) "Disrupted Day" means any Scheduled Trading Day on which a relevant Exchange or any Related Exchange fails to open for trading during its regular trading session or on which a Market Disruption Event has occurred. "Early Closure" means the closure on any Exchange Business Day of the relevant Exchange or any Related Exchange(s) prior to its Scheduled Closing Time unless such earlier closing time is announced by such Exchange(s) or Related Exchange(s) at least one hour prior to the earlier of (i) the actual closing time for the regular trading session on such Exchange(s) or Related Exchange(s) on such Exchange Business Day and (ii) the submission deadline for orders to be entered into the Exchange or Related Exchange system for execution at the Valuation Time on such Exchange Business Day. "Exchange" means each exchange or quotation system specified as such for the Index, any successor to such exchange or quotation system or any substitute exchange or quotation system to which trading in the shares underlying the Index has temporarily relocated (provided that the Determination Agent has determined that there is comparable liquidity relative to the shares underlying the Index on such temporary substitute exchange or quotation system as on the original Exchange). "Exchange Business Day" means any Scheduled Trading Day on which each Exchange and Related Exchange are open for trading during their respective regular trading sessions, notwithstanding any such Exchange or Related Exchange closing prior to its Scheduled Closing Time. "Exchange Disruption" means any event (other than an Early Closure) that disrupts or impairs (as determined by the Determination Agent) the ability of market participants in general (i) to effect transactions in, or obtain market values for securities on any relevant Exchange relating to securities that comprise 20 per cent. or more of the level of the Index, or (ii) to effect transactions in, or obtain market values for, futures or options contracts relating to the Index on any relevant Related Exchange. "Index" means the DAX Index (Bloomberg: DAX Index). "Index Adjustment Event" means an Index Modification, Index Cancellation or Index Disruption, all as defined in 4c(2) below. "Index Business Day" means any day that is (or, but for the occurrence of a Market Disruption Event, would have been) a trading day on the Exchange, other than a day on which trading on the Exchange is scheduled to close prior to its regular weekday closing time. "Index Component" means those securities, assets or reference values of which the Index is comprised from time to time. "Index Level" means the level of the Index as determined by the Determination Agent at the relevant Valuation Time by reference to the level of the Index published by the Index Sponsor. "Index Linked Redemption Amount" means an amount in EUR which shall be determined by the Determination Agent in accordance with the following provisions: (a) If the Barrier has not been breached, i.e. if the level of the Index at every time during the period from, but excluding, the Initial Index Valuation Date to, and including, the Final Index Valuation Date as continuously monitored on an intra-day basis is higher than or equal to the Barrier, the Index Linked Redemption Amount shall be determined in accordance with the following formula: Specified Denomination * 100%;

23 - 23- (b) If the Barrier has been breached, i.e. if the level of the Index at any time during the period from, but excluding, the Initial Index Valuation Date to, and including, the Final Index Valuation Date as continuously monitored on an intra-day basis is lower than the Barrier, the Index Linked Redemption Amount shall be determined in accordance with the following formula: Specified Denomination * MIN IndexFinal 100 %; ; IndexInitial corresponding to the Specified Denomination multiplied by the lower of (a) 100 per cent. and (b) Index Final divided by Index Initial. Whereby: "Barrier" means a value of 30 per cent. of Index Initial ; "Index Final " means the official closing level of the Index on the Final Index Valuation Date; and "Index Initial " means the official closing level of the Index on the Initial Index Valuation Date. "Index Sponsor" means Deutsche Börse AG, whereby such corporation or such other entity is responsible for setting and reviewing the rules and procedures and the methods of calculation and adjustments, if any, related to the Index and announces (directly or through an agent) the level of the relevant Index on a regular basis during each Scheduled Trading Day; where reference to the Index Sponsor shall include a reference to the "Successor Index Sponsor" defined in 4c(1) below. "Index Valuation Dates" means 19 October 2011 (the "Initial Index Valuation Date") and 21 October 2014 (the "Final Index Valuation Date"). "Market Disruption Event" means the occurrence or existence of (i) a Trading Disruption, (ii) an Exchange Disruption, which in either case the Determination Agent determines is material, at any time during the one hour period that ends at the relevant Valuation Time, or (iii) an Early Closure. For the purposes of determining whether a Market Disruption Event in respect of the Index exists at any time, if a Market Disruption Event occurs in respect of a security included in the Index at any time, then the relevant percentage contribution of that security to the level of the Index shall be based on a comparison of (x) the portion of the level of the Index attributable to that security and (y) the overall level of the Index, in each case immediately before the occurrence of such Market Disruption Event. "Related Exchange(s)" means each exchange or quotation system (as the Determination Agent may select) where trading has a material effect (as determined by the Determination Agent) on the overall market for futures or options contracts relating to such Index or, in any such case, any transferee or successor exchange of such exchange or quotation system. "Scheduled Closing Time" means, in respect of an Exchange or Related Exchange and any day on which each Exchange and each Related Exchange are scheduled to be open for trading for their respective regular trading sessions, the scheduled weekday closing time of such Exchange or Related Exchange on such Scheduled Trading Day, without regard to after hours or any other trading outside of the regular trading session hours. "Scheduled Trading Day" means any day on which each Exchange and each Related Exchange specified are scheduled to be open for trading for their respective regular trading sessions. "Trading Disruption" means any suspension of or limitation imposed on trading by the relevant Exchange or Related Exchange or otherwise and whether by reason of movements in price exceeding limits permitted by the relevant Exchange or Related Exchange or otherwise (i) relating to securities that comprise 20 per